Green’s offer to M&S shareholders of up to £7bn in cash as well as a 25 per cent stake in a newly-listed company, valuing the firm at £9bn was deemed too low.
The speculation is now whether Mr Green will return with an improved offer. In a written statement M&S said that the board considers that the proposal significantly undervalues the group and its prospects and therefore rejects the proposal.
The troubled retailer added that following the recent appointment of new boss Stuart Rose, it was in the early stages of re-examining all aspects of the business in order to maximise value for shareholders.
One M&S institutional shareholder, who was pleased that the store had rejected the offer, said: "I'd rather stick with what I've got than swap it for this amount of cash and a fractional ownership in a highly indebted vehicle," said one institutional shareholder in M&S, who was pleased the retail firm had rejected the offer.
No comments yet